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Warburg Pincus to invest $95m in affordable housing

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Mumbai-based affordable housing financier Home First Finance Company India Ltd has entered into an agreement with New York-headquartered global private equity (PE) firm Warburg Pincus LLC through the latter’s affiliate Orange Clove Investments BV to invest US$95 million (INR 700 crore) for a 25% stake in Home First Finance Company India Ltd according to a press release by Warburg dated October 10, 2020.

The investment comprises of a primary fundraise from Warburg of approximately $10.2 million (INR 75 crore) and secondary sales by existing shareholders, the statement noted.

Founded in 2010, Home First is a technology-driven, affordable housing finance company providing home loans to customers from low- and middle-income segments, who are building or buying their first homes.

“Home First has had a remarkable journey to become a leading affordable housing finance company in a relatively short span of 10 years,” Warburg Pincus Managing Director Narendra Ostawal told Livemint. “It is helmed by a very talented team and robust operating processes that continue to steer the company to do well through the pandemic and to leverage the growth potential of the affordable segment.”

“We concluded that through the pandemic, the asset class that is most resilient is housing. As we have been tracking monthly information across each of asset classes, we could very clearly see, and which is very evident in Home First, that the asset quality improvement is quite material and significant,” Ostawal added.

Home First CEO Manoj Viswanathan said in the statement, “Home First is excited to partner with Warburg Pincus in this new phase of its journey. True North has been a great support as we scaled from a small to a mid-sized company.”

“Our shared passion for tech, belief in sustainable growth and strong governance has seen us thrive through several disruptive events,” he added.

 

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